Does Homeowners Insurance Cover Lightning Strikes?
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Homeowners insurance typically covers damage from lightning strikes, though there are some exceptions to keep in mind. This guide explains how and when your insurance company will likely pay out for a lightning strike, what you can do to protect your home from lightning damage, plus what to expect when filing a claim.
How homeowners insurance covers lightning damage
A lightning strike to your home or property can create a fire inside or outside your home, ruin sensitive appliances, damage electronics and wiring inside the walls, and even injure you if you happen to be inside. The good news is that lightning strikes, and fire caused by lightning, are covered perils in almost all homeowners insurance policies, with no exclusions. A standard homeowners insurance policy should also provide coverage for:
- Personal property, such as electronics, appliances, furnishings, or other interior possessions damaged or destroyed by a lightning strike. Most insurers provide coverage for personal possessions at approximately 50 to 70 percent of the amount of insurance you have on the structure of your home.
- Additional living expenses, meaning the cost of living elsewhere while your damaged home is repaired or rebuilt. This coverage usually equates to approximately 20% of the dwelling's value.
- Other structures, including damage to a garage or shed on your property, typically up to 20% of your dwelling coverage limit value.
How insurers define lightning strikes and damage
Lightning is typically defined for insurance purposes as "naturally generated electricity from the atmosphere," according to Leigh Needelman, CEO and president of Florida Assurers, Inc. It is generally classified in one of three ways:
How to protect your home from lightning
A little common sense can go a long way toward shielding you from lightning-related dangers:
- Have working smoke detectors, flashlights and fire extinguishers on each floor of your home
- Plug your key appliances and electronics into compatible surge protectors
- If you hear loud thunder, remain indoors and avoid contact with standing water in sinks or bathtubs
- Be aware of the season — lightning usually strikes more frequently on late summer afternoons and evenings
Lightning strike: A bolt of lightning enters and passes through your home or other property on its way from the atmosphere to the ground. This type of lightning typically causes the most damage, including fire and charring. "This is generally the easiest claim to collect, since the damage is clearly evident," says Needelman.
Near miss: This is when lightning strikes near the home but does not hit the structure directly. In this case, the resulting damage is usually less. It may also be more difficult for the insurance company to definitively link the damage to lightning, since artificially generated current, such as sparks from a power company's electrical lines or transformers, can cause similar harm as a near miss. Since the latter is typically excluded from homeowners policies, an insurance company may not cover you if they can't confirm the cause.
Ground surge: A lightning strike causes a spike in electricity throughout an area. This is the most common lightning-related claim. The presence of a ground surge from a nearby lightning strike can be difficult to prove, so fewer claims are paid out for this type of damage.
Choose the right amount of coverage
Even in areas prone to lightning strikes, homeowners do not need to purchase additional coverage for lightning if your home is adequately covered by homeowners insurance. Lightning is a peril that falls under that coverage, and it does not have a specific claim limit.
"While there may be no need to increase your coverage for the sole purpose of safeguarding against lightning strikes,I do suggest that you annually review your policy to make certain that the coverage is consistent with current replacement cost estimates,"" says Hank Wilson, owner of Wilson Insurance & Financial Planning in Philadelphia.
Extra protection can be worth the investment
Equipping your home with an electrical ground, grounded weathervane, lightning rod and surge suppressors may not provide adequate protection from lightning, especially if you live in a lightning-prone area. Consequently, many experts recommend homes in high-risk areas have lightning protection system installed. Lightning protection systems work to intercept a lightning strike and offer a safe and efficient path that dissipates dangerous electricity to the ground, detouring it from traveling through your homes electrical or plumbing system.
A complete lightning protection system includes:
- strike termination devices
- aluminum or copper braided cable conductors
- ground terminals or rods (installed at least 10 feet into the earth)
- interconnecting bonding to minimize side flashing (lightning that jumps between two objects)
- surge suppression devices at the electrical panel
The system should also include protection for electrical, telephone, cable or satellite TV lines that enter the structure. Additionally, any tree within 10 feet of, or taller than, the home should also be protected by its own lightning protection system to prevent side flashing.
Advanced lightning protection should be installed by an experienced electrician or contractor who is UL-listed and LPI-certified. Installation plus equipment costs typically equate to less than 1% of the home's value.
Filing a claim for lightning damage
If you need to file a claim for damage from a lightning strike, here's what to expect:
- After you file the claim, an adjuster will inspect the damage to your home.
- If the cost to repair your home exceeds the deductible of your policy, you will need to decide whether to file a claim.
- If you choose to file a claim, the adjuster will offer you a settlement for repairs.
- Your insurance company will pay the settlement in two installments. The first half is to be used to begin making repairs. The second is the remaining cost of the repairs.
- When both your home's structure and personal property are damaged, you generally receive two separate checks from your insurance company – one for each category of damage. You should also receive a separate check for additional living expenses if your home is uninhabitable while repairs are being made.
- Note that most policies require claims to be filed within 60 days from the date of disaster.
It is important to note that comprehensive car insurance will cover your car if it's damaged by a lightning strike.
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